Eligibility and General Terms
The purpose of the Auburn Regional Alabama Launchpad startup competition is to promote and reward high-growth, innovative ventures that have the potential to grow and have a positive impact on economic development and job growth in the following five counties of Alabama: Lee, Chambers, Macon, Russell and Tallapoosa. The competition is for new, independent ventures in the pre-seed, seed, startup or early-growth stages, or for the expansion of an existing business into a new high-growth market.
Auburn Regional Alabama Launchpad, a program of the EDPA Foundation requires each team to agree to the following terms and conditions. Disqualification and/or forfeiture of prizes can result for team entries that fail to comply with these terms and conditions.
Exclusions: Generally excluded are the following: buy-outs, real estate syndications, tax shelters, franchises, licensing agreements, and spin-outs from existing corporations.
Originality and Intellectual Property Rights: By agreeing to the rules and eligibility terms of the competition, applicants certify that the ideas and concepts outlined in the submissions to the EDPA Foundation are the original work of the applicants. If intellectual property (IP) is involved, applicants must have obtained the legal rights to use the IP and attest that to the best of participants’ knowledge there are no legal impediments to launching the business/product.
Company Team Composition: While there is no restriction on the total size of each company team, participants may not join more than one team. All team members are expected to be active participants throughout all phases of the competition. Company team members may not be added after an applicant is accepted into the competition. Company team members refer primarily to founders, c-suite officers (CEO, CTO, CIO, etc) and employees.
Equity Investment and Revenue Requirements: Any external funding received by the startup team must be identified and reported in the application form. Ventures that have raised equity capital totaling $2 million or more from sources other than team members or their friends and families, or that have realized more than $3 million in sales in the 12 months immediately preceding the competition are not eligible. Federal grant awards, including funding from SBIR/STTR programs, are excluded from this restriction.
Waivers and Releases: Participants agree to waive all claims against the EDPA Foundation, any and all judges, reviewers, mentors, other sponsors, and/or participants in the startup competition for any actions that occur as part of, arise out of, or are in any way related to participation in this startup competition. Participants understand that no confidentiality of any information is provided and that protection of highly confidential trade secret information and other intellectual property is the responsibility of the competition applicants/participants. The EDPA Foundation will not require competition judges, mentors, or reviewers in the competition to sign nondisclosure documents. All participants are urged to seek professional guidance on the type of information that should be included in their startup competition submissions. The EDPA Foundation and its officers assume no liability for release of confidential information by the competitors, judges, mentors, or reviewers.
All submissions become the property of the EDPA Foundation and will not be returned to the teams. Participants are strongly advised to keep their own copies of all submitted materials.
Participants grant to the EDPA Foundation the right to make photographs, audio recordings, and/or video recordings of all program events or meetings, and further grant to the EDPA Foundation the unlimited right to publish, without compensation, participants’ and company names, submitted materials, photographs, audio recordings, and video recordings for educational, promotional, public relations, and advertising purposes.
All decisions made by the judges on all matters relating to the Alabama Launchpad Startup Competition are final. The EDPA Foundation, at their discretion and without prior notice to the competitors, reserves the unrestricted right to interpret these rules, and to alter, amend, or change competition rules, conditions, or awards.
Competition Process: The Startup Competition consists of multiple rounds. During each phase the judging panel will eliminate teams based on evaluation criteria and the judges’ judgement of which company(s) have the greatest chance of success.
- The judging panel is comprised of five individuals representing the investment/angel community, entrepreneurs, and corporate stakeholders.
- The same judging panel reviews all phases of the competition.
- During any phase of the competition the judging panel may solicit additional information prior to making a decision.
- Submission of all competition materials and distribution of judges’ feedback will be managed via YouNoodle system.
- Each competition will follow a posted schedule.
- All posted deadlines will be strictly enforced.
- Each team admitted into the competition must have at least one team member participate in the cycle kick-off webinar.
- Pitch requirements for each pitch presentation will be provided to participants once a company team is accepted into the startup competition. Pitches generally are expected to be 10 minutes.
- First pitch: Teams admitted into the competition will make a live pitch presentation to the judging panel and advancing teams will be announced the same day.
- Teams with qualifying scores from the first pitch presentation will advance to the semi-final round. Advancing teams will receive free of charge a market assessment report based on the company’s business plan to incorporate into their finale pitch and business plan submission.
- Teams with qualifying scores in the semi-final round will advance to the finals and are eligible to be funded.
Application and Application Fee: All participants must apply for the competition and pay the nonrefundable $150 application fee. The application fee must be paid at the time of submission. Application fees will be processed through PayPal, all major credit cards are accepted.
Applicants may not be participating simultaneously in any other Alabama Launchpad Competition while participating in the Auburn Regional Alabama Launchpad Competition.
General: Participants understand that winning teams will be required to provide the EDPA Foundation with documentation that verifies specific requirements prior to receipt of the cash prize. Winning teams will have 30 days from the date of the competition finale to satisfy all competition requirements. Participants understand that this is a firm deadline, and that the EDPA Foundation may revoke prize money for non-compliance.
Intellectual Property and Incorporation: Prior to receipt of the cash prize, winning teams must provide documentation that the business has the legal right to use any and all intellectual property referenced in their business plan. If incorporated, the business must provide documentation of all appropriate documentation including articles of incorporation and IRS information (employer tax id#). Incorporation within any state is permitted; the business is not required to be incorporated in Alabama.
Payment and Use of Prize Money: Prize money can be distributed to the business if incorporated. Participants and winning teams understand that that the funds may be distributed over time based on milestones achieved. None of the prize money awarded may be used for repayment of personal investment in the business or repayment of other debt. Competition awards will be distributed as reimbursement grants. Winning teams are highly encouraged to consult with a financial advisor prior to accepting the prize money to understand any relevant tax implications to the business. The EDPA Foundation does not provide any tax advice to winning teams.
Forfeiture and Repayment of Prize Money: Winning teams understand and agree that, if any material misrepresentations are discovered or if a winning team is not able to satisfy the above requirements or satisfactory completion of the agreed upon project milestones, the team may be disqualified and/or the company may be required to repay any cash and prizes that have been received plus 8% annual interest. Winning teams understand and agree that, if a winning company moves its headquarters or a majority of its business operations outside the designated five counties (Lee, Chambers, Macon, Russell, Tallapoosa) of the State of Alabama within five (5) years of payment of the award, the company is obligated to repay the EDPA Foundation the cash prize money plus 8% annual interest. The EDPA Foundation has the sole discretion in determining whether a company has moved a majority of its business outside the designated five counties (Lee, Chambers, Macon, Russell, Tallapoosa) of Alabama.
Business Operations and Headquarters: Award recipients must have launched at the time of application or launch and operate the proposed business in either Lee, Chambers, Macon, Russell or Tallapoosa county of Alabama and maintain the company headquarters and primary business operations in either Lee, Chambers, Macon, Russell or Tallapoosa county for a period of five (5) years. This includes a requirement that senior management of the company will operate and reside in one of the designated counties (Lee, Chambers, Macon, Russell or Tallapoosa) of Alabama.
The Auburn Regional Alabama Launchpad Competition will award up to $100K cash prizes. Please note that these awards are suggested as maximum awards. If no company meets the evaluation criteria of what would be considered a “good” investment, judges are encouraged to award less than the maximum prize (including awarding no prizes).
All entrants receive valuable feedback
Judges and EDPA staff will provide synthesized feedback throughout the process. Feedback will come in the form of quantitative evaluations and judges’ comments. Finalists will also receive a memo with suggested concrete next steps.
Companies that win will be required to do 3 things:
- Remain in one of the designated counties (Lee, Chambers, Macon, Russell or Tallapoosa) of Alabama for a period of 5 years
- Provide a detailed report 3 months after winning providing an overall company update (50% of the cash prize will be contingent on submitting this report)
- Report regularly (e.g., monthly) on 3 metrics: total FTE count, capital investment made, and revenue generated. These reports will be requested for a period of 5 years.
If winners do not submit these data, ALP can claw back its investment with the potential for an interest charge as well (please see rules and eligibility for details).